The film, announced at Cannes with the Kushner-Locke Co. as a partner, will now be financed and shot entirely in Europe, with K-L and Capitol Films handling foreign sales. The film commences lensing in late September.

“We needed to find a director who would be able to bring this incredibly rich science-fantasy story to life, and Graham’s style and sensibilities fit the bill perfectly,” Kasanoff said.

Visual effects for the under $20 million pic will be supplied by newly created Threshold Digital Labs. Using Sprint’s Drums network, the digital division will link animators and effects teams in Amsterdam, the U.K., France and L.A. to accomplish post-production tasks, including the creation of digital sets for some scenes.

Threshold produced “Mortal Kombat” for New Line and is currently in post-production on the sequel, “Mortal Kombat Annihilation,” set for a November release.